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6 Iceland 6.1 Iceland and Its Electricity Sector Iceland has successfully developed its geothermal resources and has an installed capacity of 665 MW for geothermal generation. One of the key drivers of geothermal development in Iceland was the government’s active role in the development of geothermal resources. The government supported the development of geothermal resources in two ways. First, it reduced the resource risk faced by geothermal developers. Second, it has developed geothermal power plants. Many of the first plants developed in Iceland were built by government- owned agencies or companies. We provide the following information about geothermal development in Iceland: • Iceland and Its Electricity Sector (Section 6.1) • Geothermal Resource Potential in Iceland (Section 6.2) • Geothermal Projects in Iceland (Section 6.3) • Key Factors That Enabled Geothermal Development in Iceland (Section 6.4) Iceland is a high-income country and a member of the Organisation for Economic Co-operation and Development (OECD) located in Western Europe. It had a population of 273,412 and a GDP per capita of US$47,610 in 2013.51 In Iceland, 100 percent of the population has access to electricity.52 It is the world’s largest electricity producer per capita.53 Iceland has an installed capacity of 2,767 MW and almost all electricity is generated from renewable sources with 1,986 MW of hydro-electric generation (72 percent of installed capacity) and 665 MW of geothermal generation (24 percent of installed capacity). Iceland’s remaining 4 percent of installed capacity includes wind power (2 MW) and generation from fossil fuels (114 MW).54 In 2013, Iceland generated approximately 18,116 GWh of electricity. Of this amount, 71 percent was generated from hydroelectric sources and 29 percent was generated from geothermal sources. Most of the electricity was used for industrial purposes. The largest users were the aluminum industry (68.4 percent) and the ferrosilicon industry (8.7 percent).55 Residential consumption only made up 4.6 percent of electricity consumption. In 2013, the peak power fed into the grid was 2,236 MW.56 51. Statistics Iceland, “Population by origin and citizenship,” accessed November 10, 2014, http://px.hagstofa.is/pxen/pxweb/en/ Ibuar/Ibuar__mannfjoldi__1_yfirlit__yfirlit_mannfjolda/MAN00000.px; Statistics Iceland, “Gross domestic product,” accessed November 10, 2014, http://www.statice.is/statistics/economy/national-accounts/gross-domestic-product/. 52. UNESCO, “Access to Electricity and Water for Domestic Use,” accessed November 10, 2014, http://webworld.unesco.org/water/ wwap/wwdr/indicators/pdf/H10_Access_to_electricity_and_water_for_domestic_use.pdf. 53. Askja Energy, “Energy Data,” accessed November 10, 2014, http://askjaenergy.org/iceland-introduction/energy-data/. 54. Orkustofnun, “Energy Statistics in Iceland 2013,” accessed November 10, 2014, http://os.is/gogn/os-onnur-rit/orkutolur_2013-enska.pdf. 55. Orkustofnun, “Generation of Electricity in Iceland,” accessed November 10, 2014, http://www.nea.is/the-national-energy-authority/energy-statistics/generation-of-electricity/. 56. Landsnet, “Annual Report 2013,” accessed March 16, 2016, http://www.landsnet.is/library/Skrar/Landsnet/Upplysingatorg/ Skyrslur/arsskyrslur/Landsnet_Annual%20_Report_2013.pdf. 38PDF Image | Unlocking Geothermal Power Eastern Caribbean Powerhouse
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